Hillhouse Capital raises record US$10.6 billion for private equity fund focused on Asia tech and health care

Hillhouse Capital, known for its investments in Tencent Holdings, Baidu, Didi Chuxing and Meituan Dianping, has raised a record US$10.6 billion for its latest private equity fund that will focus on Asian technology, health care and consumer sectors, the Beijing-based firm said on Wednesday.

Hillhouse Capital Fund IV is likely to have beaten KKR’s record of US$9.3 billion to become the largest pool of private equity capital ever raised with a focus on the Asia-Pacific region, according to figures from data provider PitchBook.

Just like what Hillhouse did with its previous buyout of shoe retailer Belle International, “the fund will [also] maintain focus on using Hillhouse’s expertise in technology to transform traditional businesses”, the investment management firm said in a statement.

Lei Zhang, founder and CEO of Hillhouse Capital, said that they will continue working with businesses and management teams to “deploy technology-driven solutions”.

Founded in 2005 with US$20 million from Yale University’s endowment, Hillhouse currently has more than US$50 billion under management, according to the latest information from the company.

Hillhouse manages assets for institutional LPs (limited partners) such as Canada Pension Plan Investment Board, San Francisco Employees’ Retirement System, Yale University and Mayo Clinic, according to data from PEI.com.

Zhang, a Yale graduate, has built his reputation by making early investments in Tencent and JD.com.